Let me put this another way.
Hotz could have hacked his PS3, turned it into a giant sex slave robot, whatever the fuck he wanted, and kept it private. So could anyone for that matter. But he didn't keep it private. He shared what he did with you, which you know defend as your consumer right. That's kinda messy.
If a brilliant mind didn't have an ego and simply wanted to break open his own hardware and tinker with it on his own terms, I don't think he'd have ever been sued, or even noticed.
That's why I used the house analogy. It's like he could have snuck into his own private mansion whenever he wanted and kept it on the downlow, but he didn't do that. He said, "Everyone come in! They're on vacation, they won't care. Grab a beer out of the fridge"
There's a certain line you cross that puts you in legal jeopardy. Namely, a fame whoring attention seeking one.